Nikola inks $144 million Romeo Power acquisition deal

Electric heavy truck maker Nikola has struck a $144 million deal to acquire battery pack supplier Romeo Power.

The deal gives Nikola control over a key part of its supply chain.

The transaction values Romeo at 74 cents per share, a 34% premium to Romeo’s closing price on Friday.

As part of the deal, Nikola will provide Romeo with $35 million in interim funding to continue its operations until the deal closes.

Romeo specializes in building battery modules and packs for large electric commercial vehicles, using lithium-ion battery cells manufactured by other companies.

Romeo went public via a SPAC merger in late 2020, in a deal that valued the combined company at $900 million.